Over 340,000 Medical Policies Cancelled: What Affected Policyholders Should Know

Here is your step-by-step guide to navigating this crisis.

1. Special Reinstatement

If your policy lapsed or was surrendered in 2024 due to premium repricing, you may have a "second chance. BNM has required that insurers allow policyholders to reinstate their coverage without additional medical underwriting.This means you won’t be denied coverage or charged extra for health conditions that developed while your policy was inactive. Check with your insurer to see if you are eligible for this special revival window.

2. Request "Premium Staggering"

The government has introduced interim measures to soften the blow of steep hikes. For many, premium increases are now required to be staggered over a minimum of three years.This aims to keep annual adjustments below 10% for the majority of policyholders until the end of 2026.

3. Review the "MHIT Basic Plan" (The New Baseline)

If your current premium is simply unsustainable, the government’s new MHIT Basic Plan is designed specifically as an affordable alternative. Here is the breakdown of the two standardized plans:

Standard Plan

• Annual Limit: RM100,000 (increases to RM150,000 for those aged 60+).
• Target Premium: RM80 – RM120 per month (for ages 31-35).
• Deductible: Low (approx. RM500 per disability; RM1,000 for those 61+).
• Best For: Individuals seeking essential everyday protection for common medical conditions with lower upfront costs during hospitalisation.

Standard-Plus Plan

• Annual Limit: RM300,000.
• Target Premium: RM50 – RM70 per month (for ages 31-35).
• Deductible: High (RM10,000 – RM15,000 per episode).
• Best For: Managing catastrophic or major medical bills. It is ideal for those who already have basic employer coverage or can afford higher out-of-pocket costs in exchange for lower monthly premiums.

Unlike investment-linked plans, these are pure protection products, meaning you aren't paying for "forced savings" that might fail to cover insurance charges later. Look for these plans as they roll out through 2026. They are intended to cover 99% of common private hospital episodes.

4. Adjust Your Current Policy (Downgrade vs. Lapse)

Before letting a policy lapse entirely, consider "downsizing" your benefits. It is better to have a smaller safety net than none at all.Opting for a plan where you pay a small portion of the bill (deductible) can lower your premiums by 19% to 68%.

• Downgrading from a Private Room to a Four-Bedded ward significantly reduces the underlying insurance charges.
• Remove Riders: Strip away non-essential "add-ons" like hospital cash income or waiver riders to protect the core medical coverage.A
• Note for Seniors (Aged 60+): > If you are on a "minimum plan," you are eligible for a one-year pause on premium adjustments due to medical inflation.

Ensure your insurer has applied this deferment to your account.

With 39% of Malaysia’s health expenditure still coming out of consumers' own pockets, losing your insurance can lead to devastating medical debt. The shift toward public healthcare is an option, but as the system becomes more crowded, maintaining even a basic private plan provides a vital "fast track" for non-emergency surgeries and specialist care.